Post-Award Claim For Reimbursement Of Municipal Tax Is Not Maintainable U/S 9 Arbitration Act: Calcutta High Court

The Calcutta High Court held that a partner cannot claim reimbursement of municipal tax payments through a post award petition filed under section 9 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) as such issue constitutes substantive monetary dispute requiring adjudication under section 34 of the Arbitration Act. Justice Gaurang Kanth dismissed the petition filed by partners of M/s. Chander Niwas seeking directions for reimbursement from other partners of their share of...

Supreme Court Upholds View That Eden Gardens Not A 'Public Place' For Levy Of Advertisement Tax

The Supreme Court today dismissed a challenge to the Calcutta High Court order which held that Eden Gardens stadium was not a "public place" for the purpose of levying advertisement tax under the Kolkata Municipal Corporation Act.A bench of Justices Vikram Nath and Sandeep Mehta heard the matter. Senior Advocate Jaideep Gupta appeared for petitioner-Kolkata Municipal Corporation. Senior Advocate Rajiv Shakdher appeared for respondents.Gupta argued that every bit of the Eden Gardens stadium can...

Working Men/Women's Hostels Are Residential Properties, Cannot Be Taxed At Commercial Rates: Madras High Court

The Madras High Court has recently ruled that hostels providing accommodation to working men and women are residential properties and, therefore, property tax, water tax, and electricity charges cannot be levied at commercial rates. The ruling came in response to petitions filed by hostel owners in Chennai and Coimbatore challenging Chennai municipal authorities and the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) for reclassifying their hostels from residential to commercial...

Property Tax Is First Charge On Property; Auction Purchaser Liable To Pay It Before Sale: Calcutta High Court

The Calcutta High Court has held that property tax is a first charge on property and the auction purchaser is liable to pay property tax prior to sale. The bench stated that where a statutory first charge is created on the property, such as in respect of property tax under Section 232 of the Kolkata Municipal Corporation Act, 1980, the municipal authority is entitled to enforce such charge independently in accordance with the statutory mechanism provided therein. In such a situation,...

White Petroleum Jelly Classified As 'Drug', Not Cosmetic; Higher VAT & Entry Tax Not Leviable: Madhya Pradesh High Court

The Madhya Pradesh High Court stated that White Petroleum Jelly is classified as a 'Drug', not 'Cosmetic', and therefore is not liable to higher VAT and Entry Tax. Justices Vivek Rusia and Jai Kumar Pillai stated that a White Petroleum Jelly of IP grade manufactured and sold by appellant under a valid drug licence is liable to be classified as a category of drug and medicine under Entry 19-A of Part II, Schedule II of the MP VAT Act. It was the case of the assessee/appellant that...

Vehicles Plying Only Within Enclosed Premises Of Factory/Plant Not Liable To Pay Motor Vehicle Tax : Supreme Court

The Supreme Court on Friday (Aug. 29) ruled that the vehicles operating exclusively within the enclosed premises of a factory or plant are not liable to pay motor vehicle tax, as such areas do not constitute a "public place." “Motor vehicle tax is compensatory in nature. It has a direct nexus with the end use. The rationale for levy of motor vehicle tax is that a person who is using public infrastructure, such as, roads, highways etc. has to pay for such usage. Legislature has consciously used...

Rajasthan High Court Quashes Challenge Against State Amendment Imposing New Motor Vehicle Tax On “Sleeper Bus”

The Rajasthan High Court rejected the challenge made to an amendment brought in by the Transport Department by which a new category of “sleeper bus” was added for levying motor vehicle tax, taking it out from the previous category without qualifying it for the exemptions available under other categories.The division bench of Justice Vinit Kumar Mathur and Justice Anuroop Singhi held that the “bus” fell in the definitions under Sections 2(7) and 2(29) of the Rajasthan Motor Vehicles Act,...

No Violation Of Article 14 In Denying Property Tax Exemption To Unaided Schools: Kerala High Court

The Kerala High Court stated that there is no violation of Article 14 in denying property tax exemption to unaided schools. Justice Ziyad Rahman A.A. stated that the fact that the Government owned, managed and aided schools are established by the Government at their funds in order to provide education to all classes of persons by collecting nil or meagre fees, is a crucial factor which distinguishes such establishments from an unaided school, where fees is collected from the students...

MP Entry Tax Act | Manufacturers Liable For Entry Tax As They “Cause Entry” Of Liquor Into Local Areas : Supreme Court

The Supreme Court upheld the MP High Court's decision to levy the 'entry tax' on the beer and Indian Made Foreign Liquor (“IMFL”) manufacturers for transporting goods into local areas for sale. The Court reasoned that the liquor manufacturers "cause entry" of goods into local areas, making them liable for tax under Section 2(3) of the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (“M.P. Entry Tax Act, 1976”), even if sales occur through state-controlled warehouses. ...

Property Tax Can't Be Levied Without Following Statutory Assessment Procedure U/S 233 Of Kerala Municipality Act: High Court

The Kerala High Court stated that property tax can't be levied without following statutory assessment procedure under Section 233 of Kerala Municipality Act, 1994. Section 233 of the Kerala Municipality Act, 1994, deals with the levy of property tax by the Municipality on buildings and lands within its area. This section outlines the process of assessment and collection of property tax, specifying that it should be levied in accordance with the Act and prescribed rules. Justices ...

Gram Panchayat Cannot Levy Property Tax On Industrial Establishment Within Notified Industrial Areas: Karnataka High Court

The Karnataka High Court has held that the Gram Panchayat cannot levy or collect property taxes in respect of Industrial establishments located within areas notified by the Karnataka Industrial Areas Development Board (KIADB). Mere execution of a lease-cum-sale agreement or any administrative communication cannot vest power in the Gram Panchayat to levy tax in the absence of express delegation or statutory backing.Justice Sachin Shankar Magadum held thus while allowing a batch of petitions and...

Occupancy Certificate Not Final For Plinth Area Determination: Kerala High Court Upholds Luxury Tax U/S 5A Of Kerala Building Tax Act

The Kerala High Court stated that occupancy certificate not final for plinth area determination under Section 6 of the Kerala Building Tax Act. Justice Ziyad Rahman A.A. was addressing the issue where challenge raised by the assessee was against the assessment of building tax and luxury tax, by mainly placing reliance upon Occupancy Certificate. Section 5A Of Kerala Building Tax Act imposes luxury tax on residential buildings that exceed a certain plinth area threshold. Section ...